Chapter 40

International Monetary Fund

G.G.H. Garcia

Alexandria, VA, USA

Outline

Introduction

The Fund in June 2011

The Legal Foundation

The Articles of Agreement

Sources of IMF Funds

Voting

Borrowing

Using the Fund’s Resources

Financing (loans, grants, and debt relief)

The financing process

Conditionality reforms

Loan subsidies

Financing the fund’s own operations

Other fund activities

Criticisms of the IMF

Financing in Crises

Moral hazard from bailing out private creditors

Bad medicine

Global Imbalances and Surveillance

The mutual assessment process

Freedom of Capital Movements

Governance, Legitimacy, and Accountability

Not Foreseeing and Forestalling Crises

Conclusions and Recommendations

Acknowledgments

Further Reading

Relevant Website

Introduction ...

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